July 25, 2024

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Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Power has submitted for Chapter eleven personal bankruptcy safety in the U.S. Bankruptcy Courtroom for the Northern District of Texas. The business claimed its cash situation deteriorated in the first quarter of 2020 and its cash move from operations was no lengthier ample to cover its working fees.

It was looking for courtroom approval to hold an auction “for significantly all” of its assets, it claimed. The auction is predicted to come about in the first 90 days of the personal bankruptcy. The assets are largely houses in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma claimed it might negotiate for new debtor-in-possession funding but was not specific individuals negotiations would be prosperous. The business plans to continue on to operate its company in the normal class through the personal bankruptcy system.

“Our revenues and cash situation have eroded to the stage of unsustainability largely driven by the critical downturn in oil prices,” the company’s previous CEO and CFO, Anthony Schnur, claimed in a statement. “After a lot consideration, the company’s Board of Directors came to the conclusion that the use of the Chapter eleven liquidation system was the finest route forward to optimize values and recoveries.”

Schnur resigned as interim CEO and CFO on April ten. He will continue on to oversee the debtors by Ankura Consulting Team, which was retained by Yuma as its financial adviser.

Schnur claimed Yuma had recapitalized its financial framework by credit and restructuring agreements with its financial institution, YE Financial investment, and with Purple Mountain Cash Companions, but YE lately notified Yuma it was terminating the credit agreement and accelerating all payments owing to Yuma’s failure to make well timed desire payments and comply with covenants. Purple Mountain also terminated its restructuring agreement.

YE Financial investment, an affiliate of Purple Mountain, introduced it had obtained all of Yuma’s senior secured financial institution financial debt in September 2019.

chapter eleven, Liquidation, Yuma Power